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CloudHQ Breaks ground on Hyperscale Data Center in Mt. Prospect

Written by Judy Lamelza | Aug 25, 2022 6:29:02 PM

Washington, D.C. based CloudHQ just broke ground on a $2.5 billion data center campus at the former United Airlines headquarters in Mount Prospect. The project will provide:

 

 - Millions of dollars in local tax revenue

 - Substantial boost in the property tax base

 - Hundreds of jobs

 - Millions in donations for area park improvements

 

Business Wire reports that ComEd joined CloudHQ in the groundbreaking event to launch one of the largest data centers in the state of Illinois. The project will consist of:

 

 - 1.5 million square foot hyperscale data center campus

 - Total of three buildings located at 1200 E. Algonquin Road and 1200 Dempster St.

 

The project will create hundreds of permanent new jobs and support growing business technology needs in the region. This will mark the 8th new data center project to launch in the past year in ComEd's service territory, which covers northern Illinois. ComEd will deliver a new onsite substation, extend high voltage lines, and provide new technology investments to help CloudHQ meet growing demand for data center services supporting the digital economy.

The first phase of this latest data center project headed to Illinois is set for completion in 2024, with an additional two buildings completed in the next 3-5 years based on demand. CloudHQ will develop a hyperscale data center campus which typically houses hundreds of thousands of computer servers in each building, to serve the needs of the world's largest customers. The three-building campus will be built to a LEED standard, highlighting the companies commitment to sustainable development.

W Media stated that CloudHQ purchased the 49.7 acre site from United Airlines last year, according to documents filed with the Cook County Clerk's Office. According to the terms of the development agreement, CloudHQ demolished the existing buildings to make way for the future data center.

The initial construction phase will create more than 1,000 construction jobs over two years, with an additional 2,000 full-time jobs in subsequent phases. The Village of Mount Prospect's recent quarterly economic report shows that 125 high-paying permanent jobs will need to be created after each building is completed. The project would generate $1 million to $2 million in tax revenue annually.

According to The Daily Herald, CloudHQ also has committed $2 million to the Mount Prospect Park District for the development of athletic fields at nearby Kopp Park.

Besides supplying a substantial amount of electricity, ComEd will also supply a host of technology grid upgrades, including the integration of a transformer.

The Chicagoland Chamber of Commerce President and CEO Jack Lavin stated that in 2018, the chamber commissioned a study demonstrating the opportunity Illinois had to attract data centers. The Chicago market is now fourth in the world for data center growth. The campus also promises to be a boon to the building trades. Michael Macellaio, president of Chicago & Cook County Building Trades Council stated that these jobs will provide a fair wage and benefits for the families of the tradeswomen and men who will build and service this technology campus.

The council has received a commitment that a labor agreement will be in place for the project.